MusicWorld.net Ltd. specializes in sound equipment. Because each inventory item is expensive, MusicWorld uses a perpetual inventory system. Company records indicate the following data for a line of speakers: (Click the icon to view the data.) Requirements 1. Determine the amounts that MusicWorld should report for cost of goods sold and ending inventory in the following two ways: a. FIFO b. Weighted-average cost 2. MusicWorld uses the FIFO method. Prepare MusicWorld's income statement for the month ended November 30, 2020, reporting gross profit. Operating expenses totalled $250, and the income tax rate was 35%. 3. MusicWorld is thinking of changing inventory costing methods from FIFO to weighted-average cost. Are they allowed to make this change? Briefly explain. Requirement 1. Determine the amounts that MusicWorld should report for cost of goods sold and ending inventory. (a) Using the FIFO method, the ending inventory is $ and the cost of goods sold is $ (Round interim calculations to two decimal places. Round final answers to the nearest dollar.) and the cost of goods sold is $ (b) Using the weighted-average-cost method, the ending inventory is $ Requirement 2. MusicWorld uses the FIFO method. Prepare MusicWorld's income statement for the month ended November 30, 2020, reporting gross profit. Operating expenses totalled $250, and the income tax rate was Begin with the heading, and then select the accounts and enter the amounts in the statement. (Round answers to the nearest dollar. Use parentheses or a minus sign for negative income.) MusicWorld.net Ltd. Income Statement For the Month Ended November 30, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Data table Date Item Quantity Unit Cost Sale Price November 1 Balance. 8 $ 90 8 Sale... 3 $ 140 10 Purchase 17 125 30 Sale. 7 185